Regulation and Compliance issues for Wealth Professionals can be challenging to navigate especially when the SEC is involved. Catch the latest news and analysis on compliance updates that impact financial advisors.
Commissioners voted to require RIAs touting ESG strategies provide more rigorous FORM ADV disclosures; it will separate the 'wheat from the chaff,' say compliance observers.
In one proposed change, the SEC would expand an existing rule to ensure funds labeled ESG invest at least 80% of their assets in a way that lines up with that strategy.
According to the commission, TradeZero publicly told investors it refused its clearing broker’s demands to restrict trading, when in fact it stopped trading certain stocks.
The charges come as investment advisors increasingly use ESG metrics to appeal to investors, according to SEC Enforcement Division Deputy Director Sanjay Wadhwa.
The SEC claims the RIA violated its fiduciary duty when it did not inform clients about the conflicts related to revenue-sharing agreements and must return funds to affected investors.
The Fifth Circuit Court of Appeals agreed that Congress unconstitutionally delegated its power when it allowed the SEC to pick whether to pursue enforcement cases in federal courts or internally.
